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Daffodil Health, an AI health plan administration platform, unveiled a new solution on Thursday that aims to help payers manage No Surprises Act disputes. The No Surprises Act shields patients from unexpected medical bills by keeping them out of payment disputes between insurers and providers. Under the law, insurers and providers must first spend 30 days negotiating reimbursement. If they fail to reach an agreement, either party can initiate the Independent Dispute Resolution (IDR) process, in which both sides submit proposed payment amounts and an independent arbitrator, known as an IDR entity, selects one of the offers. However, many payers are arguing that the IDR process is being abused by some providers, with providers initiating the vast majority of cases and winning most of the time at significantly inflated award levels. When the No Surprises Act was first introduced, it was estimated that there would be 17,000 arbitration cases a year, but in just the first half of 2025, there were over 1.2 million cases. By reducing administrative burden and redesigning workflows around human needs, it creates space for what matters most: connection between clinicians and patients.
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